Calculate interest for late deduction, interest for late payment after deduction and the ₹200-per-day fee for filing a TDS statement late.
How the TDS Interest Calculator works
Late deduction, late deposit and late statement filing are different defaults. The calculator does not treat them as one delay.
| Default | Rate | Calculation period |
|---|---|---|
| TDS deducted late | 1% per month or part | From the date tax was deductible to the actual deduction date |
| TDS deposited late | 1.5% per month or part | From the actual deduction date to the actual Government deposit date |
| TDS statement filed late | ₹200 per day | From the day after the due date until filing, capped at relevant statement TDS |
1% interest for late deduction
Where TDS was required but deducted later, interest is calculated at 1% for every month or part of a month. For example, ₹50,000 deductible on 10 May but actually deducted on 25 June spans two calendar months: ₹50,000 × 1% × 2 = ₹1,000.
1.5% interest for late payment of TDS
Once TDS has been deducted, a separate 1.5% monthly interest can apply if it is deposited late. The interest period runs from the date of deduction to the actual remittance date. ₹50,000 deducted on 25 June and deposited on 10 August spans June, July and August: ₹50,000 × 1.5% × 3 = ₹2,250.
₹200-per-day TDS statement late fee
The statement fee is ₹200 for each day of delay, but it cannot exceed the tax deductible or collectible for that statement. If a statement containing ₹3,000 TDS is 20 days late, ₹4,000 is the normal day calculation but the statutory cap limits the fee to ₹3,000.
| Quarter | Period | General due date |
|---|---|---|
| Q1 | April–June | 31 July |
| Q2 | July–September | 31 October |
| Q3 | October–December | 31 January |
| Q4 | January–March | 31 May |
Example: all three TDS defaults together
Assume ₹50,000 TDS was deductible on 10 May 2026, deducted on 25 June, deposited on 10 August and the Q1 statement was filed on 20 August.
| Component | Working | Amount |
|---|---|---|
| Late deduction | ₹50,000 × 1% × 2 months | ₹1,000 |
| Late deposit | ₹50,000 × 1.5% × 3 months | ₹2,250 |
| Late statement | 20 days × ₹200 | ₹4,000 |
| Total additional liability | ₹7,250 |
Interest, fee and penalty are not the same
The 1% and 1.5% amounts compensate for delayed deduction or remittance. The ₹200 daily amount is a filing fee. Incorrect reporting, continuing failure or other defaults may separately attract statutory penalty or prosecution consequences; this calculator does not estimate those amounts.
Frequently asked questions
What is the interest rate for late deduction of TDS?
It is 1% per month or part of a month from the date TDS was deductible to the actual deduction date.
What is the interest rate for late payment after deduction?
It is 1.5% per month or part of a month from the actual deduction date to the actual Government deposit date.
Is one day treated as a full month?
Every calendar month or part of a month in the applicable period is counted. Crossing into another calendar month can therefore increase the month count even where the delay is short.
What is the late fee for a delayed TDS statement?
₹200 per day, limited to the amount of tax deductible or collectible for that statement.
Can all three liabilities apply together?
Yes. A transaction can involve late-deduction interest and late-deposit interest, while the relevant quarterly statement can separately attract a filing fee.
Did the 1% and 1.5% rates change under the Income-tax Act, 2025?
No. These rates continue under Section 398 from 1 April 2026.
Need help correcting a TDS default?
TaxClear can help reconcile deductions, challans and statements before filing or correction.
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This is an educational estimate, not a challan or statutory computation. Verify the applicable TDS section, due date, correction position and portal calculation before payment.
